Main Street Financial Services Corp. Announces Earnings for Second Quarter of 2025

Financial Performance - Main Street Financial Services Corp. reported a net income of $3.7 million, or $0.47 per common share, for the three months ended June 30, 2025, with core net income at $4.1 million, or $0.52 per common share [2][6] - Net interest income increased by 95% to $12.5 million compared to $6.4 million for the same quarter in 2024, with a net interest margin of 3.68%, up 99 basis points from 2.69% [5][6] - Noninterest income rose to $0.9 million, an increase of 26.5% from the previous year, primarily due to interchange fees and service charges from acquired deposit accounts [8] Merger and Integration - The merger with Wayne Savings Bancshares, Inc. was completed on May 31, 2024, forming a financial holding company with assets of $1.4 billion [3][4] - The merger was accounted for as a reverse merger, with Legacy Wayne deemed the acquirer for financial reporting purposes, affecting the historical financial statements [4] - The combined organization has focused on strong underwriting standards and proactive credit quality monitoring since the merger announcement [14] Asset Quality and Growth - Total assets reached $1.45 billion, with net loan balances of $1.16 billion, reflecting a loan growth of $29.8 million, or 10.5% annualized, during the second quarter of 2025 [11][15] - The allowance for credit losses was $12.4 million, representing 1.06% of total loans, indicating stable asset quality [12][13] - Nonperforming loans decreased to $4.7 million, down from $6.1 million at the end of 2024, with a past due loan ratio of 0.51% [13] Capital and Equity - Total stockholders' equity increased to $116.6 million, up $5.9 million from December 31, 2024, driven by net income and partially offset by dividends [16] - The company declared a cash dividend of $0.14 per share on July 11, 2025 [6] Regulatory and Operational Developments - The company received regulatory approval to open a retail branch office in St. Clairsville, Ohio, expected to open in Q3 2025 [6] - The company continued to reduce reliance on wholesale funding, decreasing it by $15 million during the second quarter of 2025 [6][15]